ABSTRACT

This chapter is concerned with ways in which a contract may be discharged, so that the parties no longer have any obligations under it. We have already discussed one way in which this can happen in the previous chapter, under the doctrine of frustration. Contracts may also be discharged by express agreement. If both parties decide that neither of them wishes to carry on with a contract which contains continuing obligations, or in relation to which some parts are still executory, they may agree to bring it to an end early. The only problems which arise here are where the executory obligations are all on one side, so that the party who has completed performance receives no consideration for promising not to enforce the other party’s obligations. This issue has already been dealt with in Chapter 3, in connection with the doctrine of consideration, and in particular the concept of promissory estoppel, and so is not discussed further here.1 The focus in this chapter is on discharge by performance or by breach: discharge in this context meaning that all further obligations of either or both of the parties are at an end.